eXtensible Business Reporting Language
Presentation by
CA ATUL C. BHEDA MUMBAI
B Com; FCA; LLB(GEN); DISA(ICA)
The word XBRL is short form of
eXtensible Business Reporting Language
XBRL International is a not-for-profit
consortium of approximately 650 companies
and agencies worldwide working together to
build the XBRL language and promote and
support its adoption.
Effort had began in 1998 and has produced
a variety of specifications and taxonomies
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Itis language for the electronic communication of
business and financial data
It is an open standard which supports information
modeling and the expression of semantic meaning
commonly required in business reporting.
XBRL is XML-based.
It uses the XML syntax and related XML
technologies
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It provides major benefits in the
preparation, analysis and
communication of business information.
It offers cost savings, greater
efficiency and improved accuracy and
reliability to all those involved in
supplying or using financial data.
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XBRL is a standards-based way to communicate
business and financial information.
These communications are defined by metadata set
out in taxonomies.
Taxonomies capture the definition of individual
reporting concepts as well as the relationships
between concepts and other semantic meaning.
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Provides identifying tag for each individual item of
data such that it can be used by name
The basis for this technology is a "tagging" process
by which each value, item, and descriptor, etc. in the
exchanged information can be given a unique set of
tags with which to describe it. Using these tags,
computer programs can read the data without human
intervention.
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1998 April - XBRL is Conceived by Charles Hoffman, a
CPA
1999 The AICPA funded the XBRL effort. Twelve
companies including then Big five Microsoft etc joined hands
along with the AICPA as members of the XBRL Steering
Committee.
2002 First Bank Regulator to Adopt and Use XBRL The
Australian Prudential Regulatory Agency (APRA),
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How does XBRL Works
XBRL is a powerful and flexible version of XML
It enables unique identifying tags to be applied to items
of financial data.
These are more than simple identifiers.
They provide a range of information about the item,
such as whether it is a monetary item, percentage or
fraction.
XBRL allows labels in any language to be applied to
items, as well as accounting references or other
subsidiary information.
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How does XBRL Works
XBRL can show how items are related to one another.
The rich and powerful structure of XBRL allows very
efficient handling of business data by computer
software.
It supports all the standard tasks involved in
compiling, storing and using business data.
It can then be searched, selected, exchanged or
analysed by computer, or published for ordinary
viewing.
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How does XBRL Works
XBRL Taxonomies, are the vocabularies or dictionaries
which the language uses.
These are the categorisation schemes which define
the specific tags for individual items of data
National jurisdictions have different accounting
regulations, so each may have its own taxonomy for
financial reporting.
Many different organisations, including regulators,
may also require taxonomies to cover their own
business reporting needs.
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How does XBRL Works
XBRL can show how items are related to one another.
The rich and powerful structure of XBRL allows very
efficient handling of business data by computer
software.
It supports all the standard tasks involved in
compiling, storing and using business data.
It can then be searched, selected, exchanged or
analysed by computer, or published for ordinary
viewing.
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How does XBRL Works
Ordinary users of XBRL may be largely or totally
unaware of the technical infrastructure which
underpins the language. However, software
companies, such as accountancy software providers,
need to take account of XBRL and its features when
producing their products.
Now we will see in this is a small example of XBRL --
intended for reading by computers, not humans. To
see what it represents
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The idea behind XBRL, eXtensible Business
Reporting Language, is simple. Instead of
treating financial information as a block of text
- as in a standard internet page or a printed
document - it provides an identifying tag for
each individual item of data. This is computer
readable.
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Better business reporting and analysis.
Cost saving
Faster
More reliable
More accurate handling of data,
Improved analysis
Better quality of information and decision-making.
Avoids time-consuming manual comparison,
Avoids re-entry of data.
Internet Ready for transmission and direct use by all
stake holders
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Taxonomies can exist for a number of reporting
situations, for instance:
tax returns
bank call reports
financial statements
general ledger (GL)
event reporting
audit schedules
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Chartered Accountants’
Role
To explore the implementation and business process
implications of tagging XBRL at different levels in an
organization’s information infrastructure.
Explain non- technical terms
Streamlining and automating the reporting the
reporting process for internal and external purposes
Recommend the best practices in implementation of
XBRL
Determine long range plans for the organization with
regard to implementation of XBRL
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In the year 2007 the Institute of
Chartered Accountants of India
(ICAI), the premier accounting body
and the National Standard setter
constituted a Group for promotion
and development of XBRL in India.
The group had representatives of the
major regulators in India viz. the
Securities and Exchange Board of India
(SEBI)
Ministry of Corporate Affairs (MCA)
Reserve Bank of India (RBI)
Insurance Regulatory and Development
Authority (IRDA)
National Stock Exchange (NSE)
Bombay Stock Exchange (BSE)
In the year 2008, ICAI set up an Indian
XBRL Jurisdiction in the year 2009 as an
extended arm of XBRL International in
India. The Jurisdiction was Provisional in
nature for a period of 2 years.
In the year 2010,
XBRL India was awarded the status of an
“Established jurisdiction” capable of
having a representative of India at the
International Steering Committee (ISC),
the governing body of XBRL International.
„XBRL India‟ is now a company registered
U/s 25 of Companies Act, 1956. The
company is facilitated by ICAI.
It has been incorporated for managing the
affairs of Indian Jurisdiction of XBRL
International.
A separate website dedicated to the XBRL
India Jurisdiction to keep members and
other users aware about the Indian XBRL
Jurisdiction has been set up by the ICAI.
Its URL is www.xbrl.org/in.
Like other standard setters, across
the globe, ICAI developed
taxonomies based on the Indian
Accounting Standards and the Indian
Company Law requirements.
The jurisdiction first developed a
general purpose taxonomy called the
Commercial and Industrial (C&I)
Taxonomy which could be used by
any Commercial and Industrial
Enterprise. It is based on the IFRS
2006 architecture.
This taxonomy was developed through a
due consultative process where the
Industry experts reviewed the draft
taxonomy, thereafter it was exposed in
the public domain for comments. After
finalisation on the basis of comments, the
taxonomy was acknowledged by XBRL
International.
This taxonomy has been developed to
enable companies prepare their financial
statements, viz., Profit and Loss
Statement, Balance Sheet and Cash Flow
Statement in XBRL format, based on the
requirements of the accounting standards,
Indian company law and the
requirements under Clause 41 of the
Listing Agreement.
Mean while a need was felt to
develop Industry-specific taxonomy
for Banking Sector as their
requirement could not be met with
the C & I Taxonomy as their format
for presentation of financial
statement were very different.
Therefore Taxonomy for banking was
developed.
Banking taxonomy is an extension to the
core Indian XBRL C&I taxonomy.
The banking specific elements have been
added to the core schema.
The schema file contains all the element
declarations along with there XBRL
properties (including the elements of C&I
taxonomy).
It is proposed to develop other
industry-specific taxonomies viz. the
Insurance and Power sector.
Taxonomy for NBFCs is also in the
process of development.
ICAI being the neutral facilitator of XBRL
India Jurisdiction, shall assist the
regulators and users of the financial
statements by:
Developments of XBRL taxonomies.
Ensure compliance of taxonomies with
the requirement of Companies Act 1956
and other relevant legislations (LLP).
Update the existing taxonomies as per the
requirements of the IFRSs on
implementation of Indian AS in India.
Maintenance and updation of the XBRL
Taxonomies from time to time as per the
requirements and any revisions in the
Accounting Standards.
The membership of XBRL India is open to
the following categories:
(a) Regulators
(b) Organizations
(c) Academicians
Certain parameters have been laid down
for the interested organizations and
academicians to become member of XBRL
India.
The Ministry of Corporate Affairs (MCA)
has issued a circular dated 31st March,
2011 mandating certain class of
companies for filing their financial
statements in XBRL formats for the year
2010-11.
Considering the requirement for training professionals in
view of the mandate issued by MCA, it has been decided
to provide trainings in collaboration with CMII and CPE
Committees of ICAI across the country. However, to
start with the hands on training on XBRL filing, it shall
be imparted at the metros and bigger cities viz.
Bangalore, Ahmedabad, Pune etc. as of now, covering
17 cities in all in the initial phase, which shall be
extended to other cities in the future
XBRL India is also developing basic Training material
and schedule on the basic concepts and process
involved in XBRL filings.
It is proposed to design the XBRL
Certification Programs in India for the
promotion and education of XBRL in India.
Facilitating education in XBRL through a
series of workshops, seminars and
conferences.
Roping in other regulators like CBDT/
IRDA for implementing XBRL in their
reporting requirements.
Launching a certificate e-learning course
on XBRL
Complicated process of reading, understanding and
presenting XBRL filings
Enormous number of categories in XBRL, making
manual filing time consuming, expensive and
inaccurate
No real automatic solutions available on the market
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Available on the market that combine all XBRL tools into a single
user interface
Available on the market that can do both: generate XBRL filing
and map existing XBRL to document with filed data with a single
user interface
On the market that provide instant XBRL filing corrections during
the validation process
On the market providing bidirectional links between the original
document, XBRL filing, calculations and validations results
www.xbrl.org
XBRL Australia www.xbrl.org/au
XBRL Belgium www.centraledesbilans.be
XBRL Canada www.xbrl.ca
XBRL Denmark www.xbrl.dk
XBRL Europe www.xbrl.org/eu
XBRL France www.xbrl.org/fr
XBRL Germany www.xbrl.de
GRC-XML www.xbrl.org/grc-xml
XBRL India www.xbrl.org/in
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XBRL Ireland www.xbrl-ie.org
XBRL Japan www.xbrl-jp.org
XBRL Korea www.xbrl.or.kr
XBRL Netherlands www.xbrl-nederland.nl
XBRL Poland www.xbrl.org/pl
XBRL RIXML www.rixml.org
XBRL South Africa www.xbrl.org/za
XBRL Spain www.xbrl.es
XBRL Sweden www.xbrl.se
XBRL United Arab Emerates www.xbrl.org/ae
XBRL United Kingdom www.xbrl.org/uk
XBRL United States www.xbrl.us
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atul.bheda@icai.org
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